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Companies facing corporate insolvency_Relief for calculation of Minimum Alternate Tax (MAT)

Dear All,

 As per existing provisions of section 115JB of the Income-tax Act, 1961 in case of a company for the purposes of levy of Minimum Alternate Tax (MAT), the amount of loss brought forward or unabsorbed depreciation, whichever is less as per books of account shall be reduced from the book profit.

However, with a view to minimize the genuine hardship faced by companies against whom an application for corporate insolvency resolution process has been admitted by the Adjudicating Authority under Insolvency and Bankruptcy Code, 2016 Central Board of Direct Taxes (CBDT) has issued a Press Release dated 6th January, 2018 stating  that with effect from Assessment Year 2018-19 (financial year 2017-18)  the amount of total loss brought forward (including unabsorbed depreciation) shall be allowed to be reduced from the book profit for the purposes of levy of MAT under section 115JB of the Act.